2024-04-07 01:20:22
In 2023, the Commission for the Protection of Competition studied the financing sector of SME entities among five key markets, taking into account the significant role of SMEs in the formation of GDP, employment and ensuring tax revenues, as well as the problems raised by SME entities and structures related to them.
As a result of the study, it was recorded that:
In general, the field of activity of SME entities has a trend of growth and development. In the observed period (2020-2022), the number of SME entities increased by about 35% (from 44,142 to 60,999), their turnover by 76% (from 2,729 billion AMD to 4,805 billion AMD), therefore, also by them taxes paid (+63%). About 25% of those employed in the RA labor market are employees of SME entities, whose number also had an increasing trend (+29%, from 222,048 to 286,046).
SME entities mainly operate in retail trade (on average 30%), personal service provision (8%), wholesale trade (7%).
According to the results of the survey carried out by the Commission, in addition to their own and other funds, SME subjects also attract bank funds (72% of the respondents), in relation to which the main obstacles mentioned by the SMEs are: the mandatory requirement of collateral (27% of the respondents), high interest rates (25% of respondents) and the requirement of bank guarantees (20% of respondents).
Logged problems and suggested solutions
The commission recorded that it is necessary to implement certain legislative changes related to the need to develop clearer mechanisms and criteria for considering an economic entity as an SME entity.
Taking into account the fact that there are certain differences between the criteria used for the classification of enterprises according to the size of the law “On State Support of Small and Medium-sized Enterprises” and the relevant order of the RA Central Bureau of Investigation, the Commission considers that there is a need to align these criteria.
In order to ensure the opportunity for start-up companies to primarily benefit from state support programs and to exclude double participation in the programs, it was suggested to apply appropriate standards in the process of providing support to SME subjects and to create a unified database of beneficiaries.